The U.S. Treasury has a solution to the deficit, other than just printing more money. It is bringing back a bond it hasn’t been issued since 1986.
The Treasury has announced it will issue a new 20-year bond in the first half of 2020.
Treasury Secretary Steven Mnuchin surprised investors with the announcement last week. The U.S. deficit surpassed one $1 trillion in 2019 for the first time since 2012.
Mnuchin says bonds are a way to finance the government at the least possible cost to taxpayers over time.
The new 20-year bond is likely to appeal to pension funds or insurance companies.
Industry analysts say the treasury needs a new source of financing to meet future deficit needs.